Media Concierge is to acquire National World in a deal worth £65.1m – a major increase from its original offer of £56.2m.
The Irish group said it didn’t plan to close down any its news brands or make “material” job cuts in editorial or production. However, it was planning to move National World’s head office from Leeds to London.
The all-cash acquisition will be carried out by Neo Media Publishing Ltd, a newly incorporated company, wholly owned by Media Concierge.
It has agreed a 23p in cash final offer for each share, around 53.3% above the closing price of 15p.
Media Concierge explained of the deal that it had been a “significant and supportive investor” in the publisher since it was formed and also backed its acquisition of JPI Group in 2021.
It added that it viewed the publisher “as a strong business with attractive underlying qualities, notably a strong market position, a portfolio of quality brands, and broad and diversified coverage across the UK.”
In a statement to the stock exchange, Media Concierge said it felt that National World’s performance would “be enhanced as a private company under new ownership as part of an enlarged Media Concierge Group. Media Concierge also believes that a combination of National World and Media Concierge could generate synergies and that the National World business would benefit from the ability to leverage the knowledge, capabilities and relationships of Media Concierge and its management.”
Media Concierge has also provided assurances to the National World Board that it had no plans to on-sell the business “for at least 12 months” and that it was committed to preserving its print products “for the foreseeable future.”
The statement continued that the group “intends to invest in the Company’s editorial output and preserve the nature of local journalism, and as a result does not intend to close down local newsbrand locations.
“National World’s headquarters are currently located at its offices in Leeds. Media Concierge currently intends moving the head office function to London, but National World’s office in Leeds will otherwise remain open. Media Concierge has no plans to change any current National World research and development function.”
The Irish Group, owned privately by the Denmark family and led by advertising executive Malcolm Denmark also owns Mediaforce, The Leaflet Company and Iconic Media Group.
